Will Dalal Street devils of 2022 turn out to be multibaggers of next decade?
Indian new-age tech firms such as Paytm and Zomato, which saw their stocks plunge by up to 60% in 2022 causing cumulative losses of Rs 2 lakh crore, could become profitable in the near future, leading to potential as multibaggers over the next decade, according to investors. Some of the firms, including Zomato, have already increased profitability as they look to shift from a growth-at-all-costs mentality to a more sustainable long-term approach. However, experts warn that these companies still face challenges, including increased competition and potentially challenging regulations, which could hamper their profitability in the future. Key Points
Economic TimesIndia's economic growth sparks optimism as corporates anticipate profit surge
Fitch Ratings predicts a significant boost in the profitability of Indian corporates in FY25, driven by robust economic growth despite challenges in overseas markets. With a projected GDP growth of 6.5% in FY25, India is poised to be among the fastest-growing sovereigns, fueling demand across sectors. Fitch anticipates a 290 basis points improvement in profitability compared to FY23, providing corporates with rating headroom. Key Points
Economic TimesTVS Supply Chain Solutions sells Circle Express for Rs 21 crore
New Delhi, Sep 29 (PTI) TVS Supply Chain Solutions Ltd on Friday said its wholly-owned arm RICO Logistics Ltd has sold the entire stake in subsidiary Circle Express Ltd, UK, for 2.1 million pounds (about Rs 21.32 crore). The move is designed to boost the company’s profitability and sharpen its focus on core offerings to […] Key Points
ThePrintSpotify raises prices for its premium plans in the US
Spotify Technology (SPOT.N) said on Monday it was raising the prices for its premium plans by $1 each in the United States, as the music streaming company looks to boost profitability in an uncertain economy. Key Points
ReutersAdani Wilmar Q2 results: Edible oil biz hit hard, reports net loss of ₹131 cr
Adani Wilmar Q2 results: A consolidated net loss of ₹130.73 crore for September 2023 quarter, as profitability was badly impacted in the cooking oil business. Key Points
Hindustan Times
Shibani Sircar Kurian on 4 sectors one can be positive about now
Within banks, if you look at the way the entire segment has played out, the larger private banks, despite the fact that they have seen improvement in terms of profitability, have not seen multiples re-rate. Therefore, their multiples remain at long-term average levels, despite seeing significant improvement over the last couple of years where return ratios are concerned. Key Points
Economic TimesAshok Leyland working to bring EBITDA margins back to 14-15%; optimistic about Q1 too: Shenu Agarwal
Ashok Leyland's focus is on profitability and getting back to its pre-Covid-19 peak EBITDA levels. The automaker aims to expand its reach, increase its market share, and expand its product portfolio. By working on alternative fuels, electric and hydrogen cars, Ashok Leyland aims to bring in new products for Indian and other overseas markets. Although electric vehicle sales depend on STU orders, the company aims to quickly finish those and launch electric Dost and Bada Dost models by late 2021 or early 2022. Key Points
Economic TimesIndian MSMEs’ bottomlines hit by volatile commodity prices, exports face headwinds: CRISIL
The profitability of Indian MSMEs was impacted by volatile commodity prices in the previous financial year that ended March 31, leading to credit rating downgrades, rating agency CRISIL said. Raising concerns for the export-oriented sectors, CRISIL said it expects this year's export to grow at around 2-4% compared to its estimation of 5-7% growth last year. Key Points
Economic TimesAfter 38% downfall, can Nykaa stock regain its lost charm anytime soon?
After seeing rampant selling in 2022, shares of most new-age consumer technology companies rebounded sharply in 2023. However, the “Nykaa” brand owner is missing from the list. Shares of Nykaa have given negative returns of more than 7% on a YTD basis and it even touched a 52-week low of Rs 114.25 in April. Key Points
Economic TimesMeasuring ROI from technology implementations
Ease of Doing Business for MSMEs: Digitisation and automation of business processes is no longer a ‘good to have’. It is a ‘must have’ from the standpoint of ensuring transparency, scalability, predictability and controls over business operations. Key Points
Financialexpress
Measuring ROI from technology implementations, by S Venkat
Ease of Doing Business for MSMEs: Digitisation and automation of business processes is no longer a ‘good to have’. It is a ‘must have’ from the standpoint of ensuring transparency, scalability, predictability and controls over business operations. Key Points
FinancialexpressByju’s working hard to achieve group-level profitability in a few months, says co-founder
'We have 300 Aakash centres and 300 Byju’s Tuition Centres. We are confident we won’t need to launch too many more in Aakash. But in the tuition centres, yes. One common request is to make more tuition centres closer to people’s homes. Younger kids want it as near to them as possible.' Key Points
The Indian ExpressQuick grocery has caught on, and BigBasket is smiling
The Tata group-backed company expects to turn profitable early next year, reaching a rarefied milestone in the online grocery space. But first, BigBasket needs its quick-commerce arm to hustle. Key Points
mintPaytm starts getting downgrades after RBI ban, lowest target price at Rs 500
RBI imposes restrictions on Paytm Payments Bank, leading to downgrades by brokerages like Jefferies. Jefferies cuts target price to Rs 500 per share, citing reputational risks. Macquarie highlights serious implications of RBI ban on Paytm's ability to retain customers and sell payment and loan products. Paytm clarifies that user deposits are not impacted, but wallet and merchant payments business will be affected. Founder Jefferies cuts Ebitda estimates by 45% and expects delayed profitability. Key Points
Economic TimesPotential stars of next rally are top MF buys in November
Analysts say that insurance cos have managed to increase premiums on most of their existing policies by 20-30%. Given this increase, the profitability of insurance companies is likely to improve in the coming quarters, making current valuations attractive. Key Points
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Citi's 2023 revenue expected to be at lower end of forecast, CFO says
Citigroup's (C.N) full-year revenue is expected to be towards the lower end of its previous forecast, at around $78 billion, Chief Financial Officer Mark Mason said at a conference on Wednesday. Key Points
ReutersIs it time to buy travel platform companies, aviation stocks or hotel stocks? Mayur Milak answers
“We think this is a great time for the aviation industry to make money. We have seen a very strong correction in crude prices, which is clearly reflecting profitability going forward and the demand has been very steady. We are still doing almost 4 lakh plus passengers on a daily basis.” Key Points
Economic TimesZydus Lifesciences posts 53.3% jump in quarterly profit
India Business News: Indian pharmaceutical company Zydus Lifesciences reported a 53.3% increase in quarterly profit, driven by strong sales in the domestic and US markets. Key Points
Times Of IndiaITC's first quarter has no spark to ignite another rally
Subdued demand both in domestic and export markets, competition from low priced Chinese supplies in global markets, sharp reduction in global pulp prices and high-base effect impacted its performance. Lower realisations and increase in input costs impacted the segment's profitability. Key Points
Economic TimesExpect RBI to cut rates in first half of next calendar year: Shibani Sircar Kurian
“Our best guess in terms of RBI's rate action would be that possibly the central bank would wait to see how the US Fed is reacting and then take a view in terms of rates. So, yes, sometimes maybe in the first half of next calendar year, our best guess would be at this point in time.” Key Points
Economic Times
Zomato, Policybazaar: What is the way ahead after the recent run-up?
India still remains, for example, for a business like Zomato, a market which is only in a few cities even now. Things will have to evolve. To my mind, some of them are still fairly expensive. But because of the fact that there is now at least a path to profitability, there is a reason to assume that they will survive and therefore do reasonably well over a period of time. Key Points
Economic TimesHigh risk investor? Allocate a small portion in new age stocks through a basket approach: Gurmeet Chadha
For some of these companies including Zomato, Paytm, PB Fintech, the glide path to profitability guidance has been more or less met as per the market expectation. In fact, Zomato reported a profit two quarters ahead of the guidance. In Paytm also, the payment business is doing pretty well. They added 11 lakh plus merchants on the subscription services. Key Points
Economic TimesIndia's markets regulator to ease proposals on mutual fund fee structures - sources
India’s markets regulator will put forth two options to water down its earlier proposal to levy a standard investor fee on mutual funds, to limit the impact on the profitability of the 44.3 trillion-rupee ($537.75 billion) asset management industry, two sources with direct knowledge of the matter said. Key Points
ReutersPaytm leads $6 billion stock rally as India tech unicorns seek redemption
Paytm's parent company, One 97 Communications, has seen a 69% surge in shares, adding $2.7bn in market value, after improving profitability ahead of schedule. Other Indian tech firms, including Zomato and PB Fintech, have also seen significant market value growth Key Points
mintNykaa shares gain even as Q4 PAT plummets 72% YoY. Should you buy, sell or hold?
Shares of FSN E-commerce Ventures rose despite the Nykaa owner reporting a 71.83% YoY drop in March quarter profit after tax at INR2.4 crore ($320,000). While Goldman Sachs suggested there was a continuing trade-off between growth and profitability, Kotak and Nuvama reiterated their buy rating. The two firms pointed to the company's continued stable gross merchandise value growth, with Nuvama noting that the focus on a mix of profitability and stable growth over superlative growth is evident . Conversely, HDFC Securities maintained a reduce rating on the stock. Key Points
Economic Times